Agricultural Economics Report No. 133

Reclamation Laws and Costs of Strip Mined Land in North Dakota

Duane E. Gronhovd and Donald F. Scott

Department of Agricultural Economics North Dakota Agricultural Experiment Station North Dakota State University Fargo, North Dakota

January, 1979

FOREWORD Coal is becoming more important as a source of energy.

There are

16 billion tons of economically surface minable coal in North Dakota underlying 700,000 acres.

The state has a comprehensive reclamation law; mining

cannot be undertaken unless reclamation can be successfully completed. This report presents an overview of reclamation legislation passed in North Dakota, and estimates of reclamation costs are given. The authors extend their appreciation to the following persons for their comments and information: Jerome E. Johnson, Professor, Department of Agricultural Economics, North Dakota State University. Roger G. Johnson, Professor, Department of Agricultural Economics, North Dakota State University. Wallace McMartin, Agricultural Economist, Economics, Statistics, and Cooperatives Service, U.S. Department of Agriculture. William C. Nelson, Associate Professor, Department of Agricultural Economics, North Dakota State University. In addition, we appreciate the cooperation and information provided by representatives of the North Dakota Public Service Commission, Knife River Coal Mining Company, North American Coal Corporation, Baukol-Noonan, Inc., and Consolidation Coal Company. This work was supported in part by funds provided by the United States Department of the Interior, Office of Water Research and Technology, as authorized under the Water Resources Research Act of 1964, as amended, and the North Dakota Agricultural Experiment Station.

Table of Contents

Highlights

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Reclamation Laws . . . ............. 1969 Reclamation Law ............ . . . . . . .. 1973 Reclamation Law . . . . . 1975 Reclamation Law . . . . . . . . . . . . . . . . . . .. S1977 Reclamation Law. ... Federal Surface Mining Legislation ..

ummary

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Mine Conditions Used to Estimate Reclamation Costs

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Preparation and Planning Costs . Recontouring ..... Costs ... Topsoiling ....... Revegetation . . . .

The Reclamation Process and Associated Costs .

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The Effect of Alternative Mining Conditions on Reclamation Cos ts

Slope . . . . . . . . Overburden Depth . . . Coal Seam Thickness . . . - . Mine Size . . . Mine Dimensions Depth of SPGM . . Average Haul Distance . . . . ... Summary North Dakota Mines . . . . .... Larson . ...... Gascoyne . Glenharold ...... . . . . Summary Summary and Conclusions

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References Cited .

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List of Tables .

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List of Figures

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Hipg hUg ht This study de4ines the reclamation proce&z and eAtimatea the cost o4 rectaiming and in Noath Dakota.. Reclamation costs ane ultimately reflected in the purice of coa tandgthere.ole, ate o4 conceAn to tegisaatoxu,

pivate citizens, public agencies, and irJms engaged in the extraction and use of coal. North Dakota has a comptehen.sive teclamation Law, but as mote inoarmation become available, as technology changes, and as concern or. the envinaonment grows, amendments to the law ate pAoposed. The r/t.uLts o4 this study can be used to deteAmine the ezdect o4 proposedd changes in Legislation on Leceamation coats, and in evaluating alttenative poicies pe.taining to coat mining activity. The reclamation poce s wa s epaAated into preparationand planning, topsoiling, r.econtouakng, and revegetation. A set of mine conditio.n was as.umed and a recamation cost o4 $6,825 per acre waz e~timated. e.m Aunan ..Q hea ecamaton costt .. te-d o-96.-pe~ce.nt. t aiiing-aec-oa G-apnd The ef•ect that changes in overbunden depth, slope, coatl seam thickne4 , mine size, mine dimensons, the suitable plant graowth mateta depth, and the average haut distance has on reclamation costs was estimated. Changes in aUl thsee conditions except coal seam thickness have a Large impact on per acre ieclamation costs.

Reclamation costA were estimated orL the Laton, Gascoyne, and Glenharold mines in No'rth Dakota. The per a.cre recamation cost 6or the Law6on Mine was $5,583; Jor the Gascoyne Mine, $5,936; and Jor the Glenharold Mine, $6,350.

ii

RECLAMATION LAWS AND COSTS OF STRIP MINED LAND IN NORTH DAKOTA Duane E. Gronhovd and Donald F. Scott* In an era of dwindling domestic supplies of oil and natural gas and an increasing demand for energy, there has been an increase in coal production to fill this gap.

The United States has only 6 percent of the

world's proven oil reserves and 14 percent of the natural gas reserves, but has one-third of the recoverable coal reserves [Kenward]. The proven recoverable oil reserves in the United States will last 10 years at current rates of production, last 12 years.

1

while natural gas reserves will

However, recoverable coal reserves will last 349 years at

current rates of production [Smith].

Coal reserves are clearly abundant

in this country, and with the limited suply_ of natural gas and oil, coal wwill

become more important as a source of energy in the near future. The increase in coal production is causing an increase in acreage ts

disturbed by strip minin

economically surface minable coal in North Dakota underlying 700,000

of

[Gronhovd and Kube]. Figure 1.

cres

are shown in

The locations of theseposits

About 11 million tons of coal were mined in North Dakota in

1976, disturbing approximately 733 acres (estimated at 15,000 tons per Current projections are for 44 million tons to be mined per year by

acre).

1985, with an increase to 119 million tons per year by 2000 (Figure 2). In the event of a national energy emergency, production is predicted to reach over 300 million tons per year in North Dakota,

disturbing about

20,000 acres annually [Gronhovd and Kube]. Reclamation legislation pertaining to land disturbed by mining operations in North Dakota was originally passed in

j

and biennial changes

*Research Assistant and Assistant Professor, respectively, Department of Agricultural Economics, North Dakota State University, Fargo. 1

Annual oil production in the United States has been estimated at 3.5 billion barrels and proved reserves at 35 billion barrels [Smith]. 2

Production in 1976 was 19,900 billion cubic feet and reserves were estimated at 228,000 billion cubic feet [Smith]. 3

The quantity of a resource classified as reserves depends on its price and the technology and costs associated with exploration and.extraction. The quantity of reserves may change, therefore, as those variables change.

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Figure 2. Actual and Projected Coal Production in North Dakota SOURCE: Actual production figures from: Economic Research Service, Northern Great Plains Resource and Coal Development, U.S. Department of Agriculture, Washington, D.C., 1977, p. 29. Projected production figures from: Gronhovd, G..H., and W. Kube, Coal Development in North Dakota, Montana, and Wyoming, reprinted from Fuels: A Geological Appraisal, Saskatchewan Geological Society, Special Publication No. 2, 1974.

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have been made since 1973.

The present law makes reclamation an important

Snd inseparable part of the mining process.

Miningcannot be undertaken

unless reclamation can be successfully completed.

The most important changes

in reclamation legislation occurred as a result of the 1975 law, but the full magnitude and effect of the law is just beginning to be seen and understood because most land mined to date has been reclaimed under previous laws. state's comprehensive reclamation law and a possible thirty-fold SThe I increase in coal mining in North Dakota in the next 25 years makes reclamation a vitaly important issue.

.the Proposed changes in

law are

onstantly

It is important, therefore, to understand the reclamation process and how changes in the law will affect the process and the costs of reclamation. This report considers the cost of reclamation in North being considered.

Dakota and the effect physical mine characteristics and reclamation law requirements have on cost. Reclamation Laws

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The first reclamation law in North Dakota was passed in 1969, and since then, reclamation has been a part of surface mining activity. The present (1977) law represents the product of biennial changes to the 1969 The general requirements of the past and present laws are reviewed in this section to provide an understanding of the reclamation process. Also included is a brief discussion of the federal reclamation law as it will law.

apply to North Dakota. 1969 Reclamation Law 4 The 1969 law required a permit to mine where overburden exceeded 10 feet in depth.

An operator who failed to obtain a permit was subject to a

fine levied by the Public Service Commission (PSC) of between $50 and $1,000 per day for each day of violation. A bond of $200 per acre mined was required along with a mining fee which varied with the number of acres

permitted as follows: 10 acres or less

=

$25 + $7.50 per acre

10-50 acres = $100 + $3.50 per acre

All the earth and other materials lying above the coal deposits, and such earth and other materials disturbed during mining,

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over 50 acres = $275 + $2.50 per acre The main duties of the mine operator were: 1. 2.

grade ridges and peaks visible from public roads, buildings, or cemetaries to a rolling topography; construct earth dams where lakes could.be formed to impound

water, provided the lakes formed would not interfere with mining; 3.

keep certain mining operations a specified distance from property lines or established right of ways;

4.

submit a rec ama plan and map to the PSC no later than December owing the first year of the permit term with a map of mining pits filed annually thereafter;

5.

the area was deemed reclaimed after the second attempt at cover establishment. 1973 Reclamation Law

[k permit was required where overburden exceeded 10 feet in depth. Failure to obtain a permit subjected the operator to a fine by the PSC of between $50 and $1000 per day. rmit application in

ieachp of

The PCwasrequix• to publish notice

the official newspaper of the county in

which mining activity would occur.

A bond of $500'was required for each

acre mined, and a filing fee of the following amounts was required: 10 acres or less = $25 + $10 per acre 10-50 acres = $100 + $10 per acre

••v^-a

over 50 acres - $275 + $10 per acre Duties of a mine operator under the 1973 law were: 1. [2.

of suitable plant growth materia((SPGM)~or as apply twaAet much as was available up to that depth; gr

the area to approximately the original topography;

3.

impound, drain, and treat runoff water to reduce stream pollution and damage to agricultural land;

4.

backsglopall fn al cuts and end walls to an angle not exceeding 35 percent from the horizontal; after backsloping, mining operations could not approach property lines or roads closer than 20 feet;

5.

bury all refuse material resulting from the mining operation;

6.

submit a reclamation plan and geologic, topographic, and soils maps to the PSC no later than December 1 following the first year of the permit term with a map of the mining pit or pits filed annually thereafter;

7.

obtain the landowner's preference for restoration of his land.

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Areas in North Dakota which were impossible to reclaim were deleted from all surface mining activities.

Any knowing or willful violation of

any regulation was subject to a fine of up to $10,000, six months in jail, or both.

An operator who willfully failed to comply with the provisions

of the law was ineligible for further mining in the state. 1975 Reclamation Law The provisions of the 1975 law applied to all surface mining operations.

An operator was required to submit an application to the PSC for

a permit which contained a soil survey of the soil material overlying the coal and a limited and extended mining plan. The limited and extended mining plans both required a description of the land to be affected by mining and included: 1. /2.

a legal description of the land; the identity of the owner of the surface rights and subsurface mineral rights;

3.

the source of the operator's legal right to mine the land;

4.

hydrologic data and geologic, topographic, and soils maps;

5.

a detailed soil survey. of coal to be mjined-4., along with the

The approximate number oons

location and composition of the coal, was required.

Annual amendments to

the extended mining plan were required to reflect any proposed mining practices that would take place within 10 years. The PSC was required to publish notice of each mining application in the official newspaper of counties where mining would occur, and the Saffected landowners and mineral owners had to be notified by the PSC. A nonrefundable fee of $250 plus $10 per acre of land to be affected was required when filing for a permit. required for each acre affected. a larger bond. stages:

A bond of at least ($1,50 was

The PSC was given authority to require

Release of the bond could be accomplished in the following %fro>

;r" >

1.

after backsloping and grading--40 percent of the bond released;

2.

upon completion of spreading SPGM--an additional 30 percent released;

3.

the remainder released upon successful completion of reclamation.

Duties of a mine operator under the 1975 law were: 1.

regrade the area to approximately the original contour or topography;

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2.

save, segregate, and respread SPGM to a maximum of five feet provided that if five feet was not available, the operator would respread all SPGM available;

3.

impound, drain, or treat all runoff water so as to minimize damages;

4.

obtain the owner's written preference for land use;

5.

backslope all final cuts, end walls, and high walls to an angle not exceeding 35 percent from the horizontal;

6.

remove or bury all refuse material;

4.

submit to the PSC by October 25 of each year, a map showing the specific locations of mining pits;

a8.

9.

make necessary repairs if the surface owner's domestic or live stock water supply was disrupted; keep a book containing specific information on the permitted mines.

Mining applications were rejected for areas which could not be reclaimed.

Violation of the permit requirement was subject to a class B

misdemeanor, which consisted of a $500 fine, six months in jail, or both. A knowing or willful violation was a class A misdemeanor, subject to a $1,000 fine, one year in jail, or both. 1977 Reclamation Law Any operator who wishes to engage in surface mining must obtain a permit from the PSC under the 1977 legislation.

However, the PSC may

delete or modify portions of the requirements for hydrologic data and geologic, topographic, and soils maps for operations which will affect less than two acres per year. Both the limited and extended mining plans require a description of the land to be affected, which includes: 1.

the legal description of the land;

2.

identity of the owner of the surface rights and subsurface mineral rights;

3.

the source of the operator's legal right to mine or affect the land;

4.

hydrologic data and geologic, topographic, and soils maps;

5.

a detailed soil survey for the limited plan.

The extended mining plan must be amended yearly to reflect any proposed mining practices which will take place within 10 years.

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An expedited amendment may be granted to an existing permit to cover an additional 15 acres contiguous to the active permit area.

The data and

map requirements of a normal application can be waived in this case. The PSC must publish notice of each mining application in the official newspaper of the county where mining would occur.

The affected landowners

and mineral owners must also be notified by the PSC. An operator must be served with a notice of noncompliance by the PSC stating the needed remedial measures if any requirement of the reclamation law is not complied with.

An order revoking the mining permit is issued

if the operator does not take corrective measures. The filing fee consists of a nonrefundable fee of $250 plus a refundable fee of $10 per acre.

The bond is set at a minimum of $1,500

per acre, with the exact amount being determined by the Commission.

The

bond is released in stages in the same way as specified under the 1975 law. Duties of the operator under the 1977 law include: 1.

backfill and regrade the mined area to the gentlest topography consistent with adjacent unmined land;

2.

save, segregate, and respread all soil material determined by the PSC to be suitable for plant growth;

3.

establish natural drainage compatible with the topography of all reclaimed land and treat runoff water so as to minimize erosion;

4.

obtain the landowner's written preference for land use;

5.

backslope all final cuts, end walls, and high walls to an angle not exceeding 35 percent;

6.

remove or bury all refuse material;

7.

submit a map showing the specific locations of the mining pits to the PSC by October 25 of each year;

8.

make necessary repairs if the surface owner's surface or domestic water supply is disrupted;

9.

maintain records or specific information on the permitted areas;

10.

restore all lands outside the permit area affected by road construction and related mining activities.

The operator, under direction of the PSC, may stockpile SPGM outside the permit area.

An operator who violates the reclamation law is subject

to a civil penalty of $10,000 for each day of the violation, as well as the class A and B misdemeanors specified in the 1975 law.

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Federal Surface Mining Legislation The Federal Surface Mining Control and Reclamation Act was signed into law on August 3, 1977.

It takes precedence over thetAte-awhex

----------;

the state law doeno

eet federal standards.

This legislation will affect

reclamation practices in North Dakota and, therefore, reclamation costs.

The

final version of the federal rules and regulations as they apply to North Dakota have not been completed, so related costs were not considered in this study.

There are several points of controversy relating to interpre-

tation of the law which have not been resolved.

Some changes in the North

Dakota law which may be brought about by the federal legislation are discussed here. Separate provisions are contained in the federal law for prime farmland that is disturbed in the mining process.

Prime farmland contains the best soils

determined by the soil water capacity, temperature, ph, electrical conductivity, exchangeable sodium percentage, and soil erodibility factor.

These soils

will have to be handled and stockpiled separately from other soils which are suitable plant growth material (SPGM) but do not meet the federal specifications.

This will significantly increase reclamation costs.

The

extent of this increase will be determined by the final guidelines. The hydrologic requirements under the federal law are substantially

greater than under present North Dakota law.

All surface drainage from

disturbed areas will have to be passed through a series of sedimentation ponds.

Surface and groundwater monitoring programs will be required.

In

addition, essential hydrologic functions must be preserved for all alluvial valley floors.1 According to Ray Walton, Commerce Council for the Public Service Commission, the increased requirements imposed by the Federal Act are expected to double or triple the size of the present permit application. The bond will still be released in stages under the federal law, but the final bond release will not take place until 10 years after final seeding. All SPGM and prime farmland soils will have to be stockpiled within the permit area.

Bond cost will more than double as a result of extending the

bond period and the area under permit.

The 1977 North Dakota reclama-

tion law allows the final high wall to be returned to a 35 percent slope, while the federal law requires a slope consistentrwith the surrounding landscape.

This will increase the cost of reclamation and complicate the

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reclamation process since it

will be necessary to move large amounts of

the final high wall or do extensive backsloping.

overburden to fill

Although the provisions of the federal rules and regulations as they apply to North Dakota are not fully understood,

there is no doubt they will

have a significant effect on the reclamation process in North Dakota. However,

it will be several years before the effects of the Federal Surface

Mining Law are known because land subject to the law will not be reclaimed for several years.

Litigation pertaining to interpretation of the law also

may delay its complete implementation. Summary The North Dakota reclamation law has undergone almost complete revision since its inception in 1969.

the requirement

The most significant change is

that all SPGM (usually up to five feet) be saved, segregatd,

and respread.

The recontouring requirements have progressed from grading all ridges and

peaks visible from public roads to a rolling topography, all

mined land- (except final high walls)

surrounding landscape.

to recontouring

to the gentlest topography of the

The addition of the extended and limited mining

plan requirements under the 1975 law places considerable emphasis

pre\

iing analysis The

eral surface mining law may cause major changes in North Dakota.

mation process in

the hydrologic requirements, requirements,

if

required in

the recla-

The separate handling of prime farmland,

the leveling of the final highwall,

and other

North Dakota, will significantly increase

reclamation costs. The Reclamation Process and Associated Costs

The type of-iniJngg.condu

d

N

h Dakta is area strip mining,

which is practiced on relatively large ttacts of land where the topography is

level to gently rolling.

An initial (box) cut is dug through the overlying

material (overburden) to the tp ,of the coal seam and extends the length of the coal seam or area being mined. feet.

The overburden is

The width of the cut is

usually 100-150

either placed on adjacent unmined land or on

adjacent land to be mined.

The latter case requires that all spoils be

rehandled before the second cut can be dug, but allows mining closer to the edge of the permit area.

The overburden from succeeding cuts is

placed in

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the previous pit.

This continues across the width of the permitted area

with the final pit forming the final high wall.

Reclamation is the process whereby affected land 5 is reconstructed in the manner and to the contour, structure, and productivity specified by

the North Dakota reclamation law.

For the purpose of this study, the

-reeamatmfiifproess was divided into the following segments:

preparation

and planning, recontouring, topsoiling, and revegetation (Figure 3).

Four

areas of primary importance in reclaiming surface mined land are the final high wall area, initial spoil bank area, ramp roads, and the remaining spoil banks. SMine Conditions Used to Estimate Reclamation Costs A set of mine conditions were developed for the purpose of estimating reclamation costs.

These conditions do not represent any one mine

in North Dakota; rather, they represent typical mine conditions often encountered and serve as a basis for developing the methodology for estimating reclamation costs. The area mined contains 450 acres,

1,760 yards by 1,237.5 yards.

The mine pit width is 120 feet and ramp roads are spaced at quarter mile intervals.

There is a uniform overburden depth of 58 feet, with the

overburden swelling 20 percent upon being handled.

A uniform coal seam of

12 feet is assumed, with a coal recovery factor of .90.

The high wall

slope is 71 degrees, the spoil bank slope is 38 degrees, and the final high wall slope is 19 degrees.

There is a uniform suitable plant growth

material depth of five feet, and all of the material is stockpiled.

All

initial spoil bank spoils are leveled toward the mine.

5The

area of land, whether located inside or outside the permit area from which suitable plant growth material or overburden has been removed for surface mining of coal or upon which suitable plant growth material, overburden, or refuse has been deposited; or any area on which roads or sediment ponds have been or will be constructed related to mining activity [North Dakota Century Code, 1977]. Four of the latest permits granted in North Dakota include one for 1,016 acres at the Falkirk mine, one each for 261 acres and 640 acres to Consolidation Coal Co., and one for 445 acres to North American Coal Co. [Englerth]. The dimensions of mines in North Dakota vary greatly, ranging in length from slightly over one-half mile to over 1.5 miles.

- 12 -

Cubic Yards of SPGM a Scraper Moves Per Hour

Figure 3. Elements of the Reclamation Process and Factors Contributing to Reclamation Costs

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Preparation and Planning Preparation and planning is an important and inseparable part of the reclamation process.

Extensive maps, reports, and surveys are required

oft the .mine operator on both a long-range and a short-range basis.

The

long-range information is contained in the "extended mining plan" which is a detailed written statement setting forth information required by the reclamation law.

The extended plan covers not less than 10 years immediately

succeeding the date it is filed with the Public Service Commission (PSC). Its purpose is to inform the PSC of conditions existing in an area proposed for mining sufficiently in advance of commencement of operations to allow 8 The an accurate assessment of the effects of such proposed operations. short-range information, or "limited mining plan," is for a period of three years.

It is defined as a detailed statement setting forth certain

information required by the reclamation law covering those years of mining ncl ded in the permit term. 9 SPreparation and planning can be defined as those .procedures necess

ry to obtain a mining permit, including the requirements specified in

the limited and extended mining plans.

It also includes those procedures

undertaken prior to mining for the purpose of securing more productive reclaimed land. The six components of this portion of the reclamation process are the filing fee, bond, extended mining plan, limited mining plan, annual map,

and semiannual report (Figure 4).

The annual map and semiannual

report provide specific information on the progress of the mining operation. The filing fee consists of a nonrefundable fee of $250 plus a refundable fee of $10 per acre.

A minimum6 bnd of $1,500 per acre of land

under permit is required, although the actual amount has typically been much higher.

The bond reflects bondable costs and does not cover the

total cost of reclamation.

Bondable costs are those which. the PSC would

encounter if it had to complete the reclamation process. with preparation and planning are not bondable.

Costs associated

Also, since the suitable

Chapter 38-14-02, 20, of the North Dakota Century Code. 9

Chapter 38-14-02,

19,

of the North Dakota Century Code.

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Certified Copies of Lease Agreements

Figure 4.

Elements of Preparation and Planning

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plant growth material (SPGM) must be removed and piled before mining can take place, the removal of SPGM is not a bondable cost.

Costs for back-

filling and grading, returning of SPGM, and revegetation are bondable. The extended mining plan, which must be updated annually, covers the land to be disturbed in the succeeding 10 years and usually covers about four times as much land as does the limited mining plan.

The extended

mining plan requires the following types of information: 1.

geologic;

2.

hydrologic;

3.

topographic;

4.

soil map;

5.

archaeologic and historic survey;

6.

legal description of the land.

The geologic information is obtained from a minimum of one drill hole per section corner

, usually running to a depth 20 feet below the

deepest coal seam to be mined.

Chemical and physical analysis of the

overburden is taken at five-foot intervals.

The hydrologic information,

which gives a general account of water resources and use, is collected from one set of drill holes per four square miles. The topographic map must show the boundaries of the plan area, current land use, and the location of streams, watersheds, and natural drainways. The soils map must show both the kind and extent of soils in the extended mine plan area.

The archaeological and historical survey must be conducted

in accordance with the survey requirements of the North Dakota State Historical Society.

The legal description of the land must be to the nearest

quarter section. The limited mining plan has much of the same type of information as the extended mining plan, but is much more intensive and only covers an initial three-year period, although extensions are granted.

The limited

plan can be divided into the following areas: 1.

geologic;

2.

hydrologic;

Drill holes must be located at each of the four corners of a section. Two sections located adjacent to one another would, therefore, require only 6 drill holes since two of the drill holes would be on the corners of both sections.

-

16 -

3.

planimetric;

4.

soil survey;

5.

archaeologic and historic survey;

6.

description of lands;

7.

coal composition information;

8.

certified copies of relevant lease agreements.

Costs The costs associated with preparation and planning are based on the assumption that the permit application is for 475 acres, although the area mined would be 450 acres.

The additional 25 acres are used to deposit

the overburden from the initial cut.

Other assumptions applicable to this

phase of reclamation are discussed on page 12.

The cost of each component

of preparation and planning was estimated separately based on information provided by industry sources and representatives of firms that contract with mining companies for work performed. The reclamation bonding requirement is site specific and, therefore, varies depending on the site for which a permit is applied for.

The average

bond requirement is about $2,500 per acre, and this figure was used in estimating preparation and planning costs. Surety bonds, which cost $10 per year per thousand dollars of bond, are used to satisfy the reclamation bond [Jordan].

All of the bond is in

effect until the land is recontoured, one and one-half years; 60 percent of the bond is in effect from this point until the land is topsoiled, onehalf year; 30 percent of the bond is in effect from the time topsoiling is completed until revegetation is successfully completed, about four years.

The total bond cost is calculated as follows: $25 x 1 x 1.5 years x 475 acres = $17,812.50 $25 x .6 x .5 years x 475 acres = $ 3,562.50 $25 x .3 x 4 years x 475 acres

= $14,250.00 $35,625.00

The extended mining plan normally covers four times the acreage of the limited plan, or about three sections if the limited plan covers 475 acres. corner.

The geologic section of this plan requires one drill hole per section The cost of this drilling, which would run to a depth of 20 feet

below the deepest seam mined, is $3 per foot.

A soil sample is required

for every five feet of depth, with the analysis costing $65 [Jordan].

- 17 -

The hydrologic portion of the extended mining plan requires one piezometric nest per four square miles.

A piezometric nest consists of

one drill hole for each aquifer at a particular location.

The cost of

drilling is $3 per foot, with total cost depending on the number and depths of the aquifers.

The common ion analysis and trace mineral analysis

cost $60 and $300 per sample, respectively. 12 Mylar drawings2 are used for the topographic information.

These

drawings and the soil map were assumed to be compiled by the mining company. Mining firms contract for the archaeologic and historic survey.

The cost is

$3 per acre, or $5,760 for three sections [Jordan]. Eight drill holes for obtaining geologic information were assumed. The rest of the geologic information and costs are the same as for the extended plan.

The hydrologic costs are the same for both the limited and

extended plans; therefore, a separate listing of costs for the limited plan is not needed.

The archaeologic and historic survey done for the extended

plan contains enough detail to also be used for the limited plan. An aerial map (cost:

$500) is used to help satisfy the planimetric

requirements of the limited plan.

In addition, about two and one-half

months are needed to compile the information and write the report [Dudley]. Soil survey work is contracted to a professional soils scientist at a cost of $7.50 per acre [Howey].

The costs associated with compiling the

legal description of the land and providing certified copies of lease agreements were estimated to be $64 and $264, respectively.

Three annual maps

are required, one each year for the length of the limited mine plan. cost per map is $384.

The

The cost of compiling semiannual reports is $512

per year. The cost of each part of preparation and planning is provided in Table 1.

The total cost of preparation and planning for an area under permit

of 475 acres is $89,005.

11

Four aquifers, occurring at depths of 30 feet, 135 feet, 300 feet, and 500 feet, were found in a groundwater survey in Ward County [Schmid], the average depth of these aquifers, 241.25 feet, was used in this study. 12

Transparent overlays placed on baseline maps which show the contour of the mine area.

- 18 -

TABLE 1.

COSTS OF PREPARATION AND PLANNING, 475 ACRES UNDER PERMIT

Total Cost

Activity -

Reclamation Fee Bond: Stage I Stage II Stage III

Extended Mine Plan: Geologic Drilling (8 drill holes to depth of 90 feet) Analysis (18 samples each for 8 drill holes) Office Work Hydrologic Drilling (4 aquifers averaging 241.25 feet) Analysis (2 samples per aquifer) Office Work Topographic Office Work Soil Map Office Work Archaeologic and Historic Survey ($3 per acre for 1,920 acres) Description of Lands Office Work

$ 5,000

$ 5,000

17,812 3,562 14,250

$35,624

2,160 9,360 960 2,895 2,880 960 320 200 5,760 64

Limited Mine Plan: Geologic Drilling (8 drill holes to depth of 90 feet) Analysis (18 samples each for 8 drill holes) Office Work Hydrologic Planimetric Aerial Maps Office Work Soil Survey Survey Cost ($7.50 per acre) Office Work Archaeologic and Historic Survey Legal Description of Land Office Work Coal Composition Information Certified Copies of Lease Agreements

$25,559

2,160 9,360 960

500 3,200 3,562 64

64 265

$20,134

Annual Map

1,152

$ 1,152

Semiannual Report

1,536

$ 1,536

$89,005

TOTAL

$

Total Per Acre -

--

-- -

---

---~-

-·

187.38 ··-

--

- 19 Recontouring Recontouring is the process by which the post-mining contour is altered to be the same as the gentlest topography of the surrounding landscape or other contour consistent with state and federal law.

The

major factors affecting the cost of recontouring are the volume of overburden to be moved, distance the overburden is moved (push distance), and the operating cost of machinery. There are four areas associated with a mine that must be considered in recontouring.

These include the initial spoil bank area, the final high

wall area, ramp roads, and the remaining spoil banks (Figure 5).

The initial

spoil bank area is formed when the overburden from the initial cut is piled. It extends from the initial spoil bank (ISB) toward the mine side for the entire distance in which the ISB spoils are moved (Figure 6).

from the first cut can be deposited in three ways.

Overburden

It can be deposited

on the side of the cut not to be mined, it can be deposited on the side of the cut to be mined, or a combination of the two can be done. The least cost method for leveling spoil piles would be to move half. of the spoils in each direction.

However, in most cases, the leveling of

the initial spoil bank does not allow this.

!

Figure 5.

Areas of Mine to be Recontoured

For this study, it was assumed

- 20 -

that the remaining spoil banks are leveled by moving all the spoils toward the final high wall side.

An average push distance of 60 feet was assumed.

It was assumed that the primary piece of equipment used in recontouring is a D-9 caterpillar with a universal blade.

Although the D-9 is not used in

all reclamation operations, it is a common machine in most reclamation operations.

The Caterpillar Performance Handbook (with appropriate per-

formance correction factors) was used to estimate the production of a D-9. The cost estimator from the Caterpillar Performance Handbook was used as the basis for hourly cost estimations with appropriate changes made to adapt the estimator to North Dakota situations. .Multiple coal seams are often encountered in North Dakota.

Generally,

the first layer of coal is removed and then the overburden above the second seam is removed and deposited in the same manner as the overbunden above the first seam.

This has the effect of increasing the depth of the

overburden but has no other effect on reclamation.

A uniform overburden

depth (58 feet) and coal seam thickness (12 feet) were assumed. Costs The cost to move a cubic yard of overburden and the yardage of overburden to be moved were estimated for each of the mine areas. The cost to move a cubic yard of overburden was estimated on the basis of equipment and labor costs, equipment performance, and average push distances. Total overburden moved was estimated on the basis of length of area and cubic yards of overburden moved per unit of distance. Dozer performance correction factors were taken from the Caterpillar Performance Handbook.

An operator with average abilities was assumed

(correction factor of .75); the ground was assumed to be frozen one-fifth of the time (correction factor of .96); and a 50 minute per hour job efficiency was used (correction factor of .84).

A total correction factor of

.6048 is obtained by multiplying these factors. Dozer production factors were estimated by applying the average 13 to dozer production estimators found in the Caterpillar push distances

13

Under the mine conditions assumed, the average push distance is 413 feet for the ISB area, 381 feet for the spoil bank side of the final high wall area, 51 feet for the final high wall side of the final high wall area, 450 feet for the ramp road area, and 60 feet for the remaining spoil bank area [Gronhovd, 1978].

- 21 -

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- 26 -

occur on land that has a gentle slope.

Land that will be returned to

native grasses normally has a steeper slope than tame pasture or cropland. In some instances the land is returned to wildlife habitat. of revegetation costs are presented in Figure 8.

The elements

Although the reclamation

goals require different seed mixtures (which affect costs of revegetation), the management practices are similar. The normal ground preparation for land to be revegetated is one trip over the land with a chisel, one trip with a disc, andone trip with a harrow. Groundwork, seeding, and fertilizing costs were determined using the custom farm rate schedule for 1977, published by the Statistical Reporting Service, USDA [Statistical Reporting Service]. Normally, 200 pounds of 18-46-0 fertilizer per acre is put on land to be revegetated.

Mulch is not applied to soils that have less than a 6

percent slope, unless the soil is sandy.

One ton of straw is applied per

acre to land with a 6 to 10 percent slope and two tons of straw applied

where the slope is greater than 10 percent [Doutch]. The total cost for revegetation of reclaimed land to the different revegetation goals is given in Table 3. A summary of the costs of reclaiming a 450 acre strip-mined area is presented in Table 4. The Effect of Alternative Mining Conditions on Reclamation Costs Physical, geologic, and topographic conditions vary greatly between and even within mine areas. specific.

Reclamation costs, therefore, are site

The effect each of these conditions has on reclamation costs

is considered in this section. Mine conditions which commonly vary are the slope of reclaimed land, overburden depth, coal seam thickness, mine size, mine dimensions, depth of suitable plant growth material (SPGM), and the average distance the SPGM must be hauled (average haul distance).

The effect on reclamation costs of changes

in each of these conditions taken separately is considered in this section. All other assumptions pertaining to original mine conditions remain unchanged. Slope The cost of recontouring and, therefore, the cost of reclamation depend on the grade of the reclaimed slope.

Reclamation costs vary

•- 27-

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-28

TABLE 3.

-

PER ACRE COSTS OF REVEGETATION

Activity

Cropland and Tame Pasture Mix Dry Soil Moist Soil

Preparation of Land Chiseling Discing (tandem) Harrowing

Native Mix

Wildlife Mix

$ 3.40 2.59 1.34

$ 3.40 2.59 1.34

$ 3.40 2.59 1.34

$ 3.40 2.59 1.34

Seeding

2.95

2.95

2.95

2.95

Fertilizer Application

1.61

1.61

1.61

1.61

Seed Mixture

10.06

10.31

53.23

12.52

Fertilizer

16.50

16.50

16.50

16.50

$38.45

$38.70

$81.63

$40.91

Total

TABLE 4.

TOTAL RECLAMATION COST FOR A 450 ACRE MINE

Activity Preparation and Planning

Cost $

89,005.00

Recontouring

934,027.00

Topsoiling

2,030,150.00

Revegetationa

Total

18,263.75

$3,071,445.75

s5

cost per mined acre cost per permitted acre

$ $

cost per M BTU cost per ton of coal

$ $

6463.27 .033 .454

bCropland revegetation goal. Figured at 7,000 BTU per pound of coal and 15,000 tons of coal per acre. Figured at 15,000 tons of coal per acre.

- 29 from $8,200 per acre with a 2 percent reclaimed slope to $5960 per acre for a 20 percent slope. The only portion of reclamation costs significantly affected by varying slope is recontouring costs.

As reclaimed slo

average dozer push distance for the initial spoil

s increased, the

ank (ISB) a

and the

s decrease is

spoil bank side of the final high wall area decreases.

quite large for changes in relatively gentle slopes, and then levels off as slope increases.

The average push distances for other areas of the mine

remain the same. There is an inverse relationship between reclaimed slope and yardage of overburden moved for all mine areas except the final high wall side of the final high wall area.

The decrease in overburden moved for the

spoil bank side means that the area that must be covered by overburden from the final high wall side increases.

Figure 9 shows the effect of reclaimed

slope on per acre reclamation costs. Overburden Depth The depth of overburden has a significant effect on reclamation costs.

An increase in overburden depth increases the size of the base of

the ISB and, therefore, the number of acres under permit.

This increases

the number of acres that must be topsoiled. The main effect of an increase in overburden depth, however, is the increase in recontouring costs.

Recontouring costs for all areas but the

remaining spoil bank area increase as overburden depth increases.

Overburden

depth has no effect on per acre recontouring costs for the remaining spoil bank area.

An increase in both the average push distance and the cubic

yards of overburden moved increases recontouring costs for the final high wall area, ramp road area, and the ISB.

The effect of overburden depth

on per acre reclamation cost is presented in Figure 10. Coal Seam Thickness Coal seam thickness has a small effect on per acre reclamation costs but has a substantial effect on cost per ton of coal mined.

The only portion

of the reclamation process affected by coal seam thickness is the recontouring process.

Coal seam depth does not affect the yardage of overburden

to be moved for the ISB area, but it does affect the push distance.

A

-

30 -

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ccl 0 0 LiJ

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4.00

Figure 9.

i

8.00

I

12.00

PERCENT SLOPE

16. 16.00

200

2.0O0

Effect of Slope on Reclamation Costs

=0 -I cv 0

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'=J

1

40.00 80.00 120.00 160.00 OVERBUROEN OEPTH (FEET)

"

200.00

Effect of Overburden Depth on Reclanation Cost

- 31 -

thinner coal seam increases the height of the leveled spoil banks and, therefore, results in a longer push distance to level the ISB spoils.

This

increases the cost of recontouring the ISB area. A change in the coal seam thickness changes the height of the final high wall.

This affects both the yardage of overburden to be moved per

unit of distance and the distance it must be moved.

These two factors act

together to form a direct relationship between coal seam thickness and the cost to reclaim the final high wall side of the final high wall area.

Coal

seam thickness has no effect on the recontouring cost for the other mine areas. The interaction of the changes in reclamation costs for the ISB area and the final high wall area cause per acre reclamation costs to decrease for seam thicknesses up to 12 feet and to increase thereafter.

Figure 11

shows the effect of coal seam thickness on per acre reclamation costs. Mine Size Per acre reclamation costs are $7,681 for a 100 acre mine, assuming other mine conditions originally specified do not change.

Costs decrease

sharply as mine size increases to 400 acres, and then increases gradually thereafter. All costs associated with the reclamation process except per acre revegetation costs are affected when mine size is changed.

The per acre

cost of preparation and planning decreases sharply as mine size increases to about 300 acres and gradually increases thereafter. Mine length is the length of the high wall and mine width is the distance mining progresses from the ISB to the final high wall.

A change

in length and width, with the ratio of mine length to width remaining constant, changes the proportion of the total mine area accounted for by the initial spoil bank area, ramp road area, final high wall area, and the remaining spoil bank area.

As the width of the mine area increases, the

proportion accounted for by the remaining spoil bank area increases.

This

area is relatively inexpensive to recontour, so per acre reclamation costs tend to decrease.

The number and length of ramp roads increase as mine

dimensions increase and this increases per acre reclamation costs.

- 32 d ao ~ CO

WcU, CL~J tA(0

bC-)

-i CD

uc C;

Ct

30.

-0.00.

16.00

8.00

4U.U

24.00

COAL SEAM THICKNESS

32.00

(FEET)

4U.00UU

Effect of Coal Seam Thickness on Reclamation Cost

Figure 11.

An increase in

16.00 -- 2'-

---.---

0

mine size also increases the average haul distance to the

topsoil stockpile,

and this increases topsoiling costs.

The interaction of these factors forms the cost curve depicted Figure 12.

The sharp upturns in

caused by an increase in

per acre costs noted in

in

this figure are

the number of ramp roads at each point. Mine Dimensions

A change in

mine dimensions affects reclamation costs by changing

both recontouring and topsoiling costs.

There is

a direct relationship

between mine length and per acre reclamation costs. spoil bank,

The proportion of the mine accounted for by the initial final high wall area,

and ramp road area increases as the ratio of mine

length to width increases. therefore,

These are expensive areas to reclaim and,

the total cost of reclamation will tend to increase.

The increase in

high wall length increases the distance the scraper

must travel to reach the stockpile if

it

must travel along the mining pass

to the edge of the mine when removing and replacing topsoil. in

travel distance increases haul time and,

These factors

therefore,

together form the cost curve depicted in

This increase

topsoiling cost. Figure 13.

- 33 -

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Figure 12.

ill

40

MINE

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2oo 0001600.00 2000.00

1.

Effect of Mine Size on Reclamation Cost

0

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RRTIO OF MJNE LENGTH TO WJOTH Effect of Changes in Figure 13. Width on Reclamation Cost

the Ratio of Mine Length to

- 34 -

Depth of SPGM The cost of removing, stockpiling, and reapplying a cubic yard of

SPGM is $.53.

The total cost of topsoiling an acre of land, assuming

all material is stockpiled, varies directly with the depth of SPGM (Figure 14). Average Haul Distance The average haul distance by itself is an important factor in deterPreviously, it was assumed the scraper traveled

mining reclamation costs. 4

along the mining pass to the edge of the mine when removing and replacing topsoil, and this made average haul distance a direct function of the length of the mining pass.

In some cases, however, the average haul distance

is not related to the length of the mining pass. S

Reclamation costs are $4,700 per acre for an average haul distance

of 1,000 feet, and increase to over $8,700 per acre when the distance is 5,500 feet (Figure 15).

The reason for this increase is the extra travel

time needed to reach the stockpile.

00 SPGM DEPTH

Figure 14.

Effect of SPGM Depth on Reclamation Cost

- 35 -

0

)0000

RVERAGE HRUL O1STRNCE (FE. T)

Figure 15.

Effect of Average Haul Distance on Reclamation Cost

Summary Many factors affect the cost of reclamation.

Overburden depth is

the most important determinant of recontouring costs with the reclaimed

slope also significantly affecting these costs. little effect on recontouring costs.

The depth of SPGM and the average

haul distance greatly affect t_ýosoiling costand, reclamation.

Coal seam thickness has

therefore,

the cost of

Each foot of SPGM adds $855 to the cost of reclamation while

each 1,000 foot increase in

average haul distance increases per acre recla-

mation cost by about $667. Both mine size and mine dimension affect reclamation costs. mation costs fall sharply as mine size increases to 400 acres, increase to about $7,300 per acre for a 1,500 acre mine. increase as the length of the high wall increases in of the mine.

Recla-

then gradually

Reclamation costs

relation to the width

- 36 -

North Dakota Mines Currently, there are nine active coal mines in North Dakota.

Coal

production at most of these mines has been increasing, and several companies are adding new and larger draglines.

With an increase in coal production

comes an increase in the number of acres disturbed by mining activity. Reclamation costs were estimated for the Larson, Glenharold, and Gascoyne coal mines in North Dakota (Figure 16) to show how reclamation costs vary from mine to mine within the state.

Mining conditions may

vary significantly within each mine; therefore, a series of pits was selected at each mine to representaverage conditions. Larson The Larson (Noonan) Mine operated by Baukol-Noonan Coal Co. is located in Burke County in the northwestern corner of the state.

The

series of pits for which reclamation costs were estimated has a high wall length of 4,200 feet (Table 5).

The width of the mining operation is 3,000

feet and encompasses 290 acres.

There are an additional 16.36 acres which

are used to stockpile overburden from the initial cut. The average haul distance for the suitable plant growth material (SPGM) is quite long-5,000 feet.

The depth of SPGM is 3.12 feet.

The

cost to move a cubic yard of SPGM is S.3462 or S3,485.38 per acre. The average overburden depth of 40 feet is relatively shallow in comparison to 58 feet assumed in the original mine layout, while the reclaimed slope of 3 percent is more gentle than 5 percent assumed in the Mine model.

Although the shallower overburden depth tends to lower recontouring

costs, the more gentle slope increases them.

The result is recontouring

costs of $1,652 per mined acre which is $424 lower than the mine model.

The per acre reclamation cost is S5,583 for the Larson Mine.

A

summary of the reclamation costs for the mine is presented in Table 6. Gascoyne The Gascoyne Mine, which is operated by Knife River Coal Co., is located in Bowman County in the southwest corner of the state.

There are

four main series of pits in the Gascoyne Mine; the one considered here has a high wall length of 4,800 feet. 5,500 feet in width.

The mine encompasses 606 acres and is

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